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The response of emerging financial markets to IMF news during COVID-19 pandemic11We are grateful for the comments and suggestions of Ali Kutan, Kate Phylaktis, Mahmoud Mohieldin and Galina Hale

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  • Abuelfadl, Moustafa
  • Yamani, Ehab

Abstract

This article compares the influence of IMF related news announcements on currency and stock markets before and during the coronavirus pandemic in an event study and regression framework. Our event horizon includes a total of 116 IMF event news, of which 64 are associated with emerging countries (as our key test assets) and 52 are associated with developed countries (as controls), spanning the period from January 2017 to December 2020. Our central finding is that IMF news exert significant impact on emerging currency and stock markets, but the conclusion about the direction of this news effect depends on our choice of model specification (event study versus regression), event news type (bad versus good news), and the cross-market spillover effects between currency and stock markets in the wake of the pandemic.

Suggested Citation

  • Abuelfadl, Moustafa & Yamani, Ehab, 2025. "The response of emerging financial markets to IMF news during COVID-19 pandemic11We are grateful for the comments and suggestions of Ali Kutan, Kate Phylaktis, Mahmoud Mohieldin and Galina Hale," International Review of Economics & Finance, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:reveco:v:101:y:2025:i:c:s1059056025003399
    DOI: 10.1016/j.iref.2025.104176
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    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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